When push comes to shove, and both of you are not having it, divorce might be the answer. There’s no more sugarcoating to the fact that life is constantly changing and the same goes with your partner. Yes, you may have initially thought that you see things eye to eye and respect differences if not but some people are not just tolerant or resilient when it comes to fixing things or accepting it.
Some people need space apart to thrive, and that may mean full separation especially if the relationship is riddled with lies, abusive behavior, and intolerable behavior. But what if the divorce is not just a typical case of two individuals separating? What if both of them contributed and earned a hefty amount of properties, cash, and resources over the course of their marriage? What happens next?
This article aims to discuss how one could deal with divorces under the context of the Texas Law. In Texas, there is what they identify as “community property state” it is a property or resource that came to be during the couple’s marital state. When something is tagged as a community property state, it will be split and divided into equal parts for you and your spouse. The issue lies when one spouse tries to hide it or characterize it as his own personal property because, under the legislative regulations, it is not subject to equal division.
Trace, plan and talk to legal counsel
Well, inevitably the first step is to speak to a lawyer and identify all of the properties and determine if it is a community property state or a separate property. With help from one that knows the loopholes of the law governing this civil issue, you will have an objective look regarding the whole situation.
Enterprises that are tagged as a community property state
First, talk with your spouse if you both have plans of continuing the operations of the business and you can choose to split the income of the enterprise equally or by percentage. If one party decides to cash in on his share, a fair valuation of the property is done, or an asset from the enterprise can be awarded to that partner. By chance that both spouses lost interest in continuing the operations of the business, they can opt to find a buyer for the enterprise and split the proceeds of the transaction.
Savings, Retirement funds and Investments
If either one of the spouses does not particularly engage in business ventures, chances are he/she is saving up for retirement through Individual Retirement Accounts or IRAs which is saved from his/her respective employment. More often than not, these savings are classified as “community property state,” and it’s a matter of summing it all up and dividing the money equally for both parties to share. However, if there is a staggering amount of money involved (talk about hundreds of thousands) legal advice is needed for the transaction to be successful.
Divorce is an undesirable life event. It is an awful experience that most people would gladly steer away from. However, you cannot tell what the future may bring. If divorce is the best answer to a marital issue, protect your assets and investments by asking professional help regarding the matter.